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Labour warns at-retirement guidance poses misselling risk

Labour is backing greater flexibility in pension pots but warns the Government must move to tackle misselling risks in its new guidance regime.

The Budget pensions overhaul will be supported by face-to-face guidance for defined contribution pension scheme members at retirement.

Shadow Work and Pensions Secretary Rachel Reeves says: “Labour wants a better deal for savers and we support reform and greater flexibility for people in retirement.

“We believe that it is right people who save are given greater choice in using their carefully saved pension money.

“We want the Government to make sure there is independent support for people to maximise their retirement income. The Treasury must publish a fully costed implementation plan for the delivery of high quality advice, including steps to combat the risk of misselling.”

The party says reforms must benefit middle earners and warns pensions tax relief “must not help only the richest”.

Last year, shadow pensions minister Gregg McClymont told Money Marketing to “watch this space” when asked if Labour is planning to reform tax relief.

Independent financial consultant Richard Hobbs says: “It is a poor response from Labour.

“It is terrified of opposing these reforms because they would be accused of boosting the nanny state and it does not poll very well.”

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  1. goodness gracious 28th March 2014 at 10:48 am

    If the new proposed face to face consultancy regime gives information and personalised guidance, how can this lead to mis selling? By it’s very nature, it is generic only and maintaining capital and or income over a number of years should only benefit the retiree by giving them factual information relevant to their own circumstances. This should allow the recipient to make an informed decision about the relevance and future of their pension pot.
    More total nonsense from the Labour party who view retirement savings as part of their sphere of influence and wish to control all citizens so they can become compliant with their socialist ideals.
    Freedom for individuals, Paah!

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